Sanctions will not trouble VMC

Recently, the Housing and Urban Development Corporation (HUDCO) gave a loan of over Rs 4 crore to built underground water pipelines near Harni. Though the file was tabled about five years ago during the administrator’s tenure, it was only after constant follow ups that the amount came through.City Engineer B K Desai told Express Newsline that although last year the Corporation had put up a Rs 153-crore proposal to get funds from foreign agencies nothing had materialised. According to highly placed sources, it was just preliminary demand and therefore not seriously considered.

In the proposal rooted through the state government, the VMC had presented a plan to set up sewage treatment plants, upgrade the existing ones along with the capacity of sewage pumping stations, lay storm water drains, develop ring roads and set up a ‘Transport Nagar.’It was estimated that work on the sewage treatment plants would cost nearly Rs 48 crore. Laying storm water drain lines was to cost nearly Rs 14 crore. While the ring road was to be developed at a cost of nearly Rs 14 crore, the ‘Transport Nagar’ was to cost about Rs 6 crore.While the VMC had put up a proposal before the foreign agencies to develop the ring road, it has also applied to the HUDCO in a bid to keep options open.

Moreover, Desai said the work on the sewage treatment plants and storm water drains would start only after the master plans were ready. While the contracts have been awarded, the master plans are expected to be ready only by the year end.

Sources further said the civic body had also banked on financial institutions and various commercial banks, for funds.

With recession having hit the market, even commercial banks were looking out for good municipal corporations instead of converting their funds into non-profit assets by giving to companies and industries, sources said adding that the Surat Municipal Corporation (SMC) had also got loan from a commercial bank.